Upgraded Industrial Warehouse with Expansion
For Sale
$525,000
720 Terminal Road, Lansing, MI 48906
6,048 sq ft industrial warehouse with expansion potential in Lansing.
Property Size6,048 SF
Price / SF$86.81
Days on Market331
Property Features for 720 Terminal Road
General Information
Standard status
Active
Size
6,048 SF
Class
C
Total Parking Spaces
6
Property subtype
Industrial
Zoning
HI
Building Details
Building Size
6,048 SF
Year Built
1972
Listing Agency:
RE/MAX
(517) 321-2800
Listed By:
Matthew Wisniewski · License #6501360426
(517) 321-2800
Source:
Remaxcommercial
Added: Sep 25, 2025
Changed: Aug 8
Last Checked: Aug 20 at 4:03AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX
Investment Insights
Based on property information with market context.
This upgraded 6,048 sq ft industrial warehouse is zoned for light industrial use and was previously conditionally approved by the City of Lansing for licensed marijuana cultivation, processing, and microbusiness operations. The property includes an adjacent 0.61-acre lot, creating a total area of 0.922 acres and offering potential for expansion, additional parking, storage, or new development. Constructed in 1972 and extensively upgraded from 2017 to 2022, the facility features specialized infrastructure, including a 775 sq ft vegetative room with a 3-ton HVAC system with UV filtration and ten ceiling receptacles for grow lights. There are also multiple flower rooms: Room #1 (361 sq ft), Rooms #2 & #3 (800 sq ft each), and Room #4 (828 sq ft). A 338 sq ft drying/processing room is located on an upstairs mezzanine and includes a 3-ton AC, molecular ion air disinfection, and secure keypad entry. The common area (900–1,200+ sq ft) is equipped with a reverse osmosis water hookup, nutrient mixing station, double basin sink, storage racks, and polyurethane foam insulation. A new front addition provides a secure employee locker area and security office with smart-scan steel doors and a 3-ton HVAC system. The property is equipped with a security system featuring 38 HD cameras with night vision and AI tracking, burglar alarms, exterior speakers, and a mobile app for remote monitoring. Additional amenities include a 480 sq ft shed with 16 ft ceilings and a 64 sq ft ADA-compliant restroom. Located in Lansing’s industrial hub, this property is suitable for cannabis businesses or other light industrial ventures.
Key Highlights
- Previously conditionally approved for licensed marijuana cultivation, processing, and microbusiness operations by the City of Lansing.
- Move‑in ready for cannabis cultivation or adaptable for other light industrial uses, featuring state‑of‑the‑art infrastructure and extensive upgrades from 2017‑2022.
- Includes an adjacent 0.61‑acre lot, providing a total of 0.922 acres for expansion, additional parking, storage, or new development.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$39,296
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.48%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$785,920
$785.9K
Cap Rate 7%
$561,371
$561.4K
Cap Rate 9%
$436,622
$436.6K
Market Conditions
NOI Build-Up for 6,048 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$61.7K $10.20/SF
− Vacancy
−$5.6K −$0.92/SF
EGI
$56.1K $9.28/SF
− OpEx
−$16.8K −$2.78/SF
NOI
$39.3K $6.50/SF
Area
Lansing, MI
Vacancy
9.00%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$785,920
Cap Rate 7%
$561,371
Cap Rate 9%
$436,622
Alternative Uses
Best Use
Warehouse
$697.2K
$610.1K – $813.4K
NOI $48,804 @ 7.0% cap · market cap 9.30%
Second Best
Industrial
$561.4K
$491.2K – $654.9K
NOI $39,296 @ 7.0% cap · market cap 7.48%
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $87,145 @ 7.0% cap · market cap 16.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
200
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48906, MI
25,674
Population
12,180
Households
2.1
Avg Household Size
37
Median Age
29%
College-Educated
91%
High-School Grad
32.5 sq mi
ZIP Area
790
Density / Sq Mi
$61,533
Median Household Income
$38,551
Median Earnings
$1,033
Median Rent
$128,600
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 6,048 sq ft industrial warehouse with expansion potential in Lansing.
Where is this warehouse located?
The property is located at 720 Terminal Road Lansing, MI.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Previously conditionally approved for licensed marijuana cultivation, processing, and microbusiness operations by the City of Lansing.; Move‑in ready for cannabis cultivation or adaptable for other light industrial uses, featuring state‑of‑the‑art infrastructure and extensive upgrades from 2017‑2022.; Includes an adjacent 0.61‑acre lot, providing a total of 0.922 acres for expansion, additional parking, storage, or new development.
